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TAIPEI : Taiwan plans to take more steps to prop up a sluggish economy that has shaken the public's faith in the new government more than three months after it took office, officials said on Sunday.
Top government officials, including Vice Premier Paul Chiu and Finance Minister Lee Sush-der, said the measures would be discussed during Thursday's cabinet meeting.
The officials declined to provide details, but local media reported that they include lowering the stock transaction tax and individual income tax.
Legislators Lai Shyh-bao and Chiu Yi of the ruling Kuomintang have pledged to pass a bill to reduce the 0.3 percent stock transaction tax, a move Chiu said would be a "wonder drug" to the pummelling stock market.
But the opposition cast doubt over the effects of lowering that tax, alleging it would do little to boost investor confidence.
On Sunday, Premier Liu Chao-hsiuan urged Taiwanese to have faith in the government's steps to revive the economy, such as 80-billion Taiwan dollars tagged (2.52 billion US) for infrastructure projects.
"The money pumped into the projects launched in May to expand domestic demand will be given to local governments before month's end," Liu told reporters.
He also noted that up to 500,000 poor households were beginning to receive government subsidies, which would "help stimulate the economy."
President Ma Ying-jeou, of the Kuomintang, swept to a landslide victory in March largely on pledges to improve the island's sluggish economy, vowing to achieve six percent annual economic growth -- although he gave no time frame.
However, his supporters started losing patience as the economy showed no sign of an upswing.
Taiwan's weighted index fell 105.35 points, or 1.64 percent at 6,307.28 last Friday - below the 20-year moving average.
The opposition have demanded Liu step down, and tens of thousands of people protested in Taipei late last month against what they said was his government's failure to improve the domestic economy and Ma's China-friendly policies. - AFP/de
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